SHF Holdings regains compliance with Nasdaq and announces equity credit line

SHF Holdings (SHFS) announced that has regained compliance with The Nasdaq Stock Market Listing Rule 5550 that requires at least $2.5M of shareholders’ equity. The Company completed a series of recapitalization transactions on September 30 that raised $6.8M in new capital and eliminated $18.8 M of its debt. The Company is now essentially debt free and is now equipped with capital to execute on its growth strategy. The financing was led by certain accredited investors, with Company Management and members of the Board participating in the financing. The recapitalization provides substantial operational flexibility for management to execute on its strategic plan. Since the Board selected Terry Mendez as its CEO in February to lead Safe Harbor’s transformation, the Company has been focused on regaining Nasdaq listing compliance, addressing the Company’s liquidity challenges, and positioning the Company for long-term strategic success. The Board of Directors and Executive Management have been restructured with a new strategic vision, more than $3M in annualized run rate costs have been eliminated, and management has now secured the Company’s ability to maintain its Nasdaq listing while significantly improving its liquidity position and capital structure. The Company also announced that it has established a $150M equity line of credit, with the ability to expand the ELOC to $500M, subject to market conditions, share price requirements, and other conditions as detailed in the Company’s SEC filings. The ELOC provides strategic optionality to pursue high-return lending and growth opportunities to expand its Fintech platform per the Company’s strategic plan. The Company plans to access the ELOC for accretive deployments that management believes will generate returns exceeding the cost of capital. As the ELOC facility requires 25% of proceeds to redeem Series B Convertible Preferred stock, any ELOC utilization will further strengthen the Company’s capital structure while funding future growth.